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International Journal of Business and Society, Vol. 18 S4, 2017, 742-753 BUSINESS ENGAGEMENT IN ADAPTATION TO CLIMATE CHANGE IN DEVELOPING COUNTRIES: A CASE STUDY BASED ON BEHAVIORAL PERSPECTIVE Mehedi Islam Universiti Malaysia Sarawak Rohaya Mohd-Nor Universiti Malaysia Sarawak ABSTRACT Objectives of the paper are to explore the current state of business engagement in adaptation to climate change, identify hidden drivers and barriers of adaptation, and to find ways to accelerate the engagement process in a highly climate vulnerable developing country. Based on behavioral perspective, the authors deployed a qualitative multiple case study research to investigate three significant business sectors in Bangladesh namely telecom, real estate and garments manufacturing. Findings show that their overall perception of climate change impacts on businesses is still unclear. Their present engagements in adaptation can be termed as co- adaptation with other regular organizational changes. Majority of adaptation decisions are reactive. Businesses show more sensitivity to non-climatic factors (e.g. regulation, market-force) than direct climatic factors like extreme weather events. They follow ‘wait and see’ or ‘deferred’ adaptation approaches, and in some cases, also absorb risks or shift the risks to other businesses. There exist a number of internal and external drivers and barriers that are directly or indirectly determine adaptation decision. Lack of awareness and wrong perception are the main barriers. However, unavailability of information and adaptation finance, costly adaptation technology, poor organizational leadership, corruption, political unrest, and unfavorable policy are significantly hampering their adaptation process. Keywords: Business Engagement; Adaptation; Climate Change; Developing Countries. 1. INTRODUCTION The discourse of business engagement in adaptation to climate change revolves around three main concepts: business risks, business opportunities, and social responsibility of business. While climate change poses significant business risks like extreme weather events, shortage of raw materials, stricter regulation and so on (Nyberg and Wright, 2015; Pattberg, 2012), it also brings some business opportunities for new investments in climate proofing products/ infrastructures, and help organizations to gain increased reputation and competitive advantage (Biagini and Miller, 2013; WBCSD, 2008). Business, as a social organization, always tries to adapt to the environment. However, traditional risk management approach will not be sufficient to deal with climate change for the peculiarity of physical impacts in terms of severity and spatial and temporal scale (Linnenleucke et al., 2012, Winn et al., 2011). In addition, most developing countries are suffering from limited resource and inadequate technical and institutional capacity for adaptation (Milner Corresponding author: Mehedi Islam, Faculty of Economics and Business, Universiti Malaysia Sarawak, 94300 Kota Samarahan, Sarawak, Malaysia. Email: [email protected]
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Business Engagement in Adaptation to Climate Change … multiple case study research to investigate three significant business sectors in Bangladesh namely telecom, real estate and

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Page 1: Business Engagement in Adaptation to Climate Change … multiple case study research to investigate three significant business sectors in Bangladesh namely telecom, real estate and

International Journal of Business and Society, Vol. 18 S4, 2017, 742-753

BUSINESS ENGAGEMENT IN ADAPTATION TO CLIMATE CHANGE IN DEVELOPING COUNTRIES: A CASE STUDY

BASED ON BEHAVIORAL PERSPECTIVE

Mehedi Islam Universiti Malaysia Sarawak

Rohaya Mohd-Nor Universiti Malaysia Sarawak

ABSTRACT

Objectives of the paper are to explore the current state of business engagement in adaptation to climate change,

identify hidden drivers and barriers of adaptation, and to find ways to accelerate the engagement process in a

highly climate vulnerable developing country. Based on behavioral perspective, the authors deployed a

qualitative multiple case study research to investigate three significant business sectors in Bangladesh namely

telecom, real estate and garments manufacturing. Findings show that their overall perception of climate

change impacts on businesses is still unclear. Their present engagements in adaptation can be termed as co-

adaptation with other regular organizational changes. Majority of adaptation decisions are reactive.

Businesses show more sensitivity to non-climatic factors (e.g. regulation, market-force) than direct climatic

factors like extreme weather events. They follow ‘wait and see’ or ‘deferred’ adaptation approaches, and in

some cases, also absorb risks or shift the risks to other businesses. There exist a number of internal and

external drivers and barriers that are directly or indirectly determine adaptation decision. Lack of awareness

and wrong perception are the main barriers. However, unavailability of information and adaptation finance,

costly adaptation technology, poor organizational leadership, corruption, political unrest, and unfavorable

policy are significantly hampering their adaptation process.

Keywords: Business Engagement; Adaptation; Climate Change; Developing Countries.

1. INTRODUCTION

The discourse of business engagement in adaptation to climate change revolves around three main

concepts: business risks, business opportunities, and social responsibility of business. While

climate change poses significant business risks like extreme weather events, shortage of raw

materials, stricter regulation and so on (Nyberg and Wright, 2015; Pattberg, 2012), it also brings

some business opportunities for new investments in climate proofing products/ infrastructures, and

help organizations to gain increased reputation and competitive advantage (Biagini and Miller,

2013; WBCSD, 2008). Business, as a social organization, always tries to adapt to the environment.

However, traditional risk management approach will not be sufficient to deal with climate change

for the peculiarity of physical impacts in terms of severity and spatial and temporal scale

(Linnenleucke et al., 2012, Winn et al., 2011). In addition, most developing countries are suffering

from limited resource and inadequate technical and institutional capacity for adaptation (Milner

Corresponding author: Mehedi Islam, Faculty of Economics and Business, Universiti Malaysia Sarawak, 94300 Kota Samarahan,

Sarawak, Malaysia. Email: [email protected]

Page 2: Business Engagement in Adaptation to Climate Change … multiple case study research to investigate three significant business sectors in Bangladesh namely telecom, real estate and

743 Business Engagement in Adaptation to Climate Change in Developing Countries: A Case Study

Based on Behavioral Perspective

and Dietz, 2015; Metz, Halsnae, Olsen, & Rasmussen, 2009). As adaptation finance (as per

commitment of Cancun Accord in 2010) received by those developing countries from international

donors is insufficient to meet future adaptation cost (Pauw et al, 2016; OECD, 2015; UNEP, 2014),

private sector’s involvement as alternative source of finance and collaboration is necessary.

Therefore, private sector or business engagement in adaptation to climate change in developing

countries does not simply imply the corporate efforts to protect their own business but also helping

government to build resiliency of climate-affected community (Biagini and Miller, 2013; Pauw

and Pegels, 2013).

Though the new discourse of private sector engagement in adaptation to climate change has been

getting attention among developed countries, the literature is still scarce (Linnenleucke et al.,

2013). There are very little evidence that private sector in developing countries are responding to

it (Sovacool et al. 2017; Nurunnabi, 2016; Pauw, 2015; Belal et al., 2010). Though Bangladesh is

considered one of the most climate vulnerable countries of the world and occasional cyclones,

floods, erratic rainfall, draughts, salinity, diseases and decreasing crops production are significantly

impeding the social and economic development (Kreft and Eckstein, 2013; ADB, 2011), businesses

in Bangladesh are visibly less concern in adaptation to climate change. Literature review reveals

that business adaptation is a complex process and depends on dynamic interaction among a wide

range of influencing factors or drivers internal and external to business. Different authors derived

different adaptation responses considering locations, types of production, apparent sizes, and

capabilities of business (see Table-1).

Table-1: List of adaptation measures as per different authors

Authors Gasbarro &

Pinkse (2016)

Agrawala et al.

(2011)

Hoffmann et al.

(2009)

Berkhout, Hertin &

Gann (2006)

Adaptation

measures

Pre-emtive

Reactive

Continuous

Deferred

No adaptation

Soft adaptation

Hard adaptation

Protect affected

business,

Expand beyond

affected business,

Share risks

Wait and see

Risk assessment and

options appraisal,

Bearing and managing

risk

Sharing and shifting risks

We are yet not clear about what adaptation measures local businesses of Bangladesh have taken to

protect their own businesses and to increase societal resilience to face climate change, and what

are the barriers that prevent themselves to be engaged in adaptation. The main objectives of the

paper are to explore the current state of business engagement in adaptation to climate change in

Bangladesh, identify hidden drivers or barriers of adaptation, and ways to accelerate the

engagement process. Therefore, the authors pose the following research questions:

Q1: How the local businesses in Bangladesh are adapting to climate change?

Q2: Why private sector or business organizations in Bangladesh are showing less concern in

adaptation to climate change?

Q3: How private sector or business organizations in Bangladesh can be engaged more effectively

in adaptation to climate change?

Existing literatures are not sufficient to give answers to the above-mentioned questions for two

reasons. Firstly, they are not contextual, and secondly, they are incomprehensive. Literature

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Mehedi Islam and Rohaya Mohd-Nor 744

suggests that both climate change and adaptation are highly location specific due to variation of

negative impacts, social and governance structure of the locality (IPCC, 2007). Therefore, studies

based on organizations owned in developed countries like UNFCC (2017) and Busch (2011) may

not provide appropriate solution in the context of developing countries. Some literatures on private

sector engagement in adaptation to climate change focus on specific business sectors such as

Gasbarro and Pinkse (2016) on oil and gas industries; Galbreath (2014) on wine production, Scott,

McBoyle and Minogue (2007) on tourism, Arnell and Delaney (2006) on water utility service and

Hertin, Berkhout, Gann, & Barlow (2003) on construction. Moreover, some studies like Biagini

and Millers (2013) and Pauw (2015) discussed the concept of private sector engagement in

adaptation too broadly and lack detail consideration for any particular country. Among them, many

literatures have methodological limitation. For example, research conducted by Gasbarro, Rizzi

and Frey (2016), and Agarawala et al. (2011) collected data from CDP (Carbon Disclosure Project).

Organizations participating in CDP are already aware of potential climate risks and opportunities

in some extent and their voluntary disclosure may hide important strategic information of

businesses. Therefore, the authors deployed a qualitative multiple case study research closely

examining three different business organizations in Bangladesh to have a generalized subjective

understanding of the phenomenon in real life context.

The findings of the study have significant theoretical contribution in both business management

and climate adaptation literature. The conceptual framework adopted from Berkhout (2012) has

been formulated on findings form many conceptual and empirical studies conducted in the context

of developed countries. In our empirical research, we tested the very theoretical framework in

different context (developing country). The practical implication of the study can be two folds.

Firstly, the findings will give insights to business leaders and managers to device appropriate

adaptation strategies in Bangladesh and other similar countries. Secondly, government of

Bangladesh or other similar countries can easily recognize and remove potential barriers and

develop enabling policy to engage private sector in adaptation to climate

2. LITERATURE REVIEW

Based on the theoretical approaches, existing literature on business engagement in adaptation to

climate change can be grouped in three distinct but overlapping perspectives, where each

perspective has its own basic assumptions but share many common facts with others.

2.1. Risk Management Perspective

Intergovernmental Panel for Climate Change defined adaptation as “adjustments in natural or

human system in response to actual or expected climate stimuli or their effects, which moderate

harm or exploit beneficial opportunities” (IPCC, 2001, p: 982). Literatures based on this

perspective believe that climate change offers both business risks (i,e., Infrastructure damage and

supply chain disruption due to cyclone or flood, new energy regulation, productivity loss for

disease and heat stress) and opportunities (i,e., new climate proofing products) and successful

organization must manage those risks and utilize the arising opportunities to sustain future

operation. This approach refers that adaptation decisions can be both proactive (anticipatory) and

reactive in response of previous experiences. However, manager’s prediction of risks and

possibilities can be inappropriate due to high level of uncertainty of climate change, and analysis

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745 Business Engagement in Adaptation to Climate Change in Developing Countries: A Case Study

Based on Behavioral Perspective

of future cost and benefits of adaptation may be faulty in some extent. Gasbarro et al. (2016),

Weinhofer and Busch (2013), Agrawala et al. (2011) and many more authors suggest that climate

change will bring a number of direct or indirect business risks -physical risk, regulatory risk,

reputational risk, market risk, financial risks, and litigation risk. They also mentioned opportunities

for cost reduction by resource efficiency, increased reputation for doing business in socially

responsible ways and expanded market share for new climate proofing products/services.

2.2. Behavioural Perspective

Views of behavioral perspective base on self-motivated actions of organization depending on

previous experience of climate change or recognizing indirect signals from external environment

of business. Behavioral responses of adaptation is gradual and comprehensive considering the

organization’s own interpretation of risks, opportunities, capabilities, available resources, actions

of other actors and impacts of market forces on business performance.

For this research, the authors selected the behavioral perspective for two reasons. Firstly,

behavioral perspective is context oriented and can explain the dynamic relationship of different

external and internal actors and factors of organizational environment (Linnenluecke et al., 2013,

Berkhout, 2102). Secondly, it supports the idea that climate change is not the only drivers for

organizational change (Smit and Wandel, 2006; Kandiklar and Risebay, 2000) rather other

environmental factors like technology, regulation, demand shift can force organization to change

or adapt (Berkhout, Hertin, & Gann, 2006; Hertin, Berkhout, Gann, & Barlow, 2003).

2.3. Institutional Perspective

Institutional approach of adaptation refers to forced adaptation through policy by regulatory bodies

or institutions in the context of business environment. It is often called normative approach, as the

main intention of this approach is to highlight business’s social responsibility to increase the

resiliency of the community to fight the battle of climate change. Basic assumption of this discourse

is that private sector with its expertise, resources, and capacity for innovation and management can

play significant role to develop societal resilience side-by-side government.

Literatures in this group, as if Biagini and Miller (2013), IFC (2013), Mendelsohn (2006), Pauw

(2015), Pauw and Pegeles (2013), and so on show that business engagement in adaptation is co-

beneficial for both business and society. They put stresses on the government’s role for creating

‘enabling environment’ by enacting appropriate policy like tax rebate for importing low-emission

technology, opening investment opportunities with government in climate proofing projects, or by

removing barriers like raising awareness, supplying business related climatic data and providing

supporting infrastructures to engage private sector in adaptation to climate change in developing

countries.

2.4. Conceptual Framework

Different authors describe adaptation process into different phases: perception- evaluation-

enactment (Berkhout, 2012), risk awareness-risk evaluation-risk management (Agrawala et al.,

2011), awareness-analytic capability-action (Moser and Luers, 2008), awareness and concern-

adaptation strategy-selection of options (Arnell and Delaney, 2006). However, all the concepts are

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Mehedi Islam and Rohaya Mohd-Nor 746

similar in contents. Following Berkhout (2012), we assumed that by the influence of different

external factor or drivers like physical risks of climate change, actions of stakeholders, organization

perceives of or detects different threats and opportunities on daily organizational routines. Then,

manager evaluates them and decides on developing possible adaptation options by considering

different internal drivers/factors like capacity, experience, resources and so on. Finally,

organization enacts those strategies as new routines or practical actions that are visible as

adaptation practices. After adaptation actions come into effect, feedback from internal and external

environment influences organization to improve or revise the adaptation strategies. Therefore, in

our conceptual framework (Figure-1) there are six concepts: (A) Perception (B) External drivers

(C) Evaluation (D) Internal drivers (E) Enactment (F) Feedback.

Figure 1: Conceptual framework for business engagement in adaptation (Berkhout, 2012)

The major concept in our theoretical framework is ‘perception’ referring to the deeper

understanding and strongly held subjective believes of business managers and their stakeholders

like partners, regulators, investors, customers, community people and others. These perceptions

are shaped by socio-economic context and can be best understood by detail observation and

qualitative interpretation of business practice, communications, interactions, and behavioral

pattern in real life situation. Therefore, this conceptual framework is a right choice for proposed

qualitative investigation.

3. METHOD

Following Yin (2009) and Gerring (2004), the authors selected qualitative case study method. The

study is explanatory in nature as it contains why and how research questions. One case runs the

high risk of being considered as subjective or non-scientific (Yin, 2009; Burns, 2000). So, three

cases had been selected from three business sectors in Bangladesh: Case-A (Telecom company),

Case-B (Real-estate company) and Case-C (Garments manufacturer). Cases had been selected

based on their apparent size of operations, age, and accessibility of the researchers. Multiple cases

from different contexts help compare findings and ensure the generalizability of theory (Drake,

Shanks, & Broadbent, 1998; Stake, 1995; Yin, 2009).

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747 Business Engagement in Adaptation to Climate Change in Developing Countries: A Case Study

Based on Behavioral Perspective

In this research, three different techniques have been used for data collection: (1). Semi structured

interviews, (2). Non-participant observation, (3). Review of company documents and website

(Please see Figure-2 for data collections and analysis method). Primary data has been collected

through 21 (twenty one) in-depth interviews with the top managers, middle managers, lower level

employees, suppliers, customers and other stakeholders of respective business organization. The

interviews were conducted in informal settings and supplemented by open-ended questions. All

interview responses were written down and translated. Non-participant observations (site visits and

day-to-day activities related to adaptation) by researchers also recorded through field notes and

photograph. Secondary data have been collected from company’s sustainability report,

newspapers, and websites.

Firstly, data were interpreted to identify direct and indirect impacts of climate change on different

business process of each case organization (as in Table-3). Secondly, using content analysis, data

were categorized according to six themes of conceptual framework to have an understanding of

adaptation process and possible drivers or barriers of adaptation in each case. Then cross-case

analysis, mainly comparing findings from individual cases, was carried out to summarize findings

and draw conclusion. Data triangulation, crosschecking, and participant’s feedback were

rigorously followed.

Figure 2: Data collection and analysis method

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Mehedi Islam and Rohaya Mohd-Nor 748

4. FINDINGS

Table 2: Adaptation process of case organizations Perception → Evaluation → Enactment

From the analysis it is

evident that business

perception on the impact of climate change is very

weak in Bangladesh.

--Though all managers mentioned different

external risks as drivers of

adaptation, they did not strongly believe that

climate change may bring

any opportunity. --Most lower employees at

recognized different

climate stimuli but failed to relate it with business.

Every case mentioned that based on

the capacity and available resources

of the organization they decides on adaptation actions.

--While exploring adaptation options,

managers give priority to issues that are experinced and need immediate

actions. So, adaptation is reactive.

--As companies, except Case- A, have no separate unit or person to

assesses climate risks, they, with

limited information, capacity, take actions only short term basis and lack

well planned long-term strategies to

creat societal resilience.

From cross case analysis the authors identified

primarily three types of adaptation practices:

climate proofing own operation, providing climate proofing products, engaging with external bodies.

--From the Table-4, it is clear that organizations in

Bangladesh have very limited visible adaptation practices. Though Case-B and Case-C have some

activities for climate proofing their operations,

none of them provides any climate proofing products or engages themselves with govt./NGOs

in adaptation activities to increase the resilience of

the community. They do some CSR activities on voluntary basis, but those activities are not well

organized or perfectly aligned with adaptation

needs of the community. Examples of Public-Private-Partnership Projects are also very few.

Table 3: Direct and Indirect impacts of climate change on case organizations

Bus. Process Direct Impacts Indirect Impacts

Ca

se-A

(Tel

eco

m)

Ca

se-B

(R

eal

esta

te)

Ca

se-C

(G

arm

ents

) Extreme

events:

cyclone,

flood,

rainfall,

Gradual

change:

Increasing

Temp.,Water

Scarcity

By Regu-

lation

By Techn-

ology

By Supply

chain

By

CustomerDe

mand

By Market

/Social

force

Procuring land

for infrastructures

Climate affected lands are

avoided for infrastructures.

Low demand

for flats.

High land

price

Designing and

building permit

Both design cost & time

increased as more environ.

Parameters are considered.

Land use policy &

building code are

become hard.

Ma

rket

-

ing

Pla

n

Reduced talk-time/ revenue

in cyclone/ flood affected

locality.

New climate proofing

services: health line,

early warning system.

Ma

rket

-

ing

pla

n

Reduced price of apartments/

flats in floods /cyclones

prone areas.

-Longer time is

necessary to get

building permit &

utility connection.

-Imported green

materials are costly

for high Taxation.

Difficulty in

Export/

Import /

Shipment at

port for bad

road

network/

weather.

Investor’/Cus

tomer’

preference

for

environment

friendly

plants and

buildings.

Media/

social

activists

protest

Environ.

sensitive

develop--

ment.

Ma

rket

-

ing

pla

n

Page 8: Business Engagement in Adaptation to Climate Change … multiple case study research to investigate three significant business sectors in Bangladesh namely telecom, real estate and

749 Business Engagement in Adaptation to Climate Change in Developing Countries: A Case Study

Based on Behavioral Perspective In

fra

stru

ctu

re

bu

ild

ing

Co

nst

ruct

ion

Pro

du

ctio

n

Extreme

events

hamper

construct-ion

works/

production

and increase

cost-time.

-Salinity

decreases

quality of sand,

brick.

-Heat stress

/diseases

decrease

productivity

-Tougher regulations

for utility connection

increase fuel cost.

-Adaptation

technology

(recycling waste,

renewable energy) is

costly.

Difficulty to

deliver raw

materials to

site.

-Scarce water

hampers

operation.

Tra

nsm

issi

on

Towers &

equipment at

stations are

damaged by

flood/

cyclones.

-Equipment

malfunctions in

high

temperature.

-Higher energy

cost for

cooling.

Customer’s confidence

decreased due to

hampered network

Maintenance

Gradual damage of

infrastructures causes high

maintenance cost

Delay in

mainten-ance

for staff/

supplies.

Table 4: List of adaptation practices taken by case organizations.

Objectives Types of activities CaseA CaseB CaseC

Reducing

risks

Climate

proofing

own

operation

Energy efficient equipment ✓ ✓ ✓

Green building/climate proof infrastructures ✓ Partial Partial

Green Supply Chain ✓ x x

Green Transportation x x x

Sources of Renewable Energy ✓ Partial Partial

Water Management ✓ x Partial

Recycling Waste ✓ x Partial

Communication by

Training to employees, suppliers/customers

Advertisement, packaging,website,CSR report

✓ ✓

Partial

x

Partial

x

Siezing

opportunities

Climate

Products

Climate proofing products

Climate proofing services

✓ ✓

x

x

x

x

Engag-

ing with

external

bodies

With other businesses ✓ x x

With Government ✓ x x

With NGOs/Communities ✓ ✓ ✓

With international bodies ✓ x x

Bearing risks

Energy and wáter crisis x ✓ ✓

Green Supply Chain x ✓ ✓

Waste management x ✓ ✓

Diversification Investment in new business ✓ ✓ ✓

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Mehedi Islam and Rohaya Mohd-Nor 750

Table 5: List of drivers or barriers of adaptation.

External Internal Enabler Barrier

Cli

ma

te Direct

climatic risks

Physical impacts (Cyclone, flood, rise of temperatura) on

infrastructures and supply chain influence business to adapt.

Uncertianity For uncertian or unpredictable nature of climate

variables, organization’s perception is not clear.

So

cia

l

Employee

Awareness

Low awareness among employees about climate

change prevents adaptation.

Stakeholders’

Awareness

Customer, business partners, investors, media &

social acitvists have less influences on adaptation

Political

unrest

Lack of political stability make mangers afraid of

further investment in adaptation.

Corruption Corruption both in corporations and govt agencies

discourage business to adaptation.

Leadership Lack of corporate leadership to consider climate

agenda in business descision

CSR CSR is not directed at adaptation needs of society.

Tec

hn

o

Information Due to lack of information & research, organizations

fail to relate climate impacts on businesses.

Technology Higher initial cost of adaptation technology and skill

manpower to operate them

Eco

nm

ic

Regulation Unfriendly regulation & disintegrated poilcy

fail to attract and incentivize priavte sector .

Market force Oppotunity to invest in climate proofing products/infrastructures.

Resource Lack of easy access to adaptation finance

Capacity Lack of expertise to asses climate risks/opportunity

Size of Org. Larger businesses adapt more.

Security Organizations do not want to disclose stratagies

5. DISCUSSION

Private sector’s perception and belief of climate change is still very hazy, that is why organizations,

except Case-A, fail to recognize business opportunities or to develop new climate proofing

products. Their engagement with government or communities is also very limited (see Table-4).

In spite of having a number of opportunities to invest in urban or rural climate resiliency projects

like slum upgradation, water desalination, community healthcare, still now any organization did

not invests in such projects. Their limited CSR activities are not properly directed towards actual

adaptation needs of the vulnerable community. Most of the interviewees from lower management

fail to relate impacts of climate change on their business. Moreover, business partners, competitors,

customers, and civil society fail to exert considerable pressure on organizations to be engaged in

adaptation. These are due to lack of proper awareness among business community and general

people as well. Supporting the fact previous authors like Agrawala et al. (2011), Arnell and

Delaney (2006), and Hoffmann et al. (2009) state that before going to take any adaptation measures

organization must be aware of potential risks and possible solutions for it. From Table-4, we can

see that Case-A is more active and takes diverse range of adaptation activities. This is because of

several reasons. First, Case-A is the largest company and has more financial and managerial

capacity than other two. Second, it has a foreign shareholder and rich corporate leadership and

culture including employee awareness programs and dedicated ‘Climate Champion’ post to deal

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751 Business Engagement in Adaptation to Climate Change in Developing Countries: A Case Study

Based on Behavioral Perspective

with climate change. So, we can infer that firm’s capacity (Bleda and Shakley, 2008), apparent size

and leadership (Carol et al, 2011; Berkhout, 2012) can positively influence the engagement in

adaptation. Table-5 lists all the possible external and internal (climatic or non-climatic) factors or

drivers that motivate organization in adaptation. We can see that in context of Bangladesh most

drivers are acting as barriers due to incompleteness. Except political unrest, all other barriers like

corruption, resource constraints, information gap, unfriendly regulations, inadequate

infrastructures, and technology are considered essential characteristics of business environment in

any developing countries like Bangladesh. Those barriers not only hamper business engagement

in adaptation but also stand as obstacles for overall development of private sector. We also notice

that Case-B and Case-C selected flood free lands for their buildings. However, in spite of facing

sever energy and water crisis, they did not take any precautionary measures like having plants for

renewable energy, rainwater harvesting to meet future demand. Case-B is aware that demand for

green building is increasing, but they did not take any initiative to produce full green buildings.

They are still waiting for strong market forces or regulatory change come in to effect. Therefore,

we can say that their adaptation strategies are reactive in nature. They follow ‘wait and see’

(Berkhout et al., 2006) or ‘deferred’ (Gasbarro & Pinkse, 2016) adaptation strategies or they do

not have financial capacity to adapt.

6. CONCLUSION

To conclude we can say that the overall scenario of private sector engagement in adaptation to

climate change in Bangladesh is fully unsatisfactory. Having extreme desire for profit

maximization, disregard for social and environmental responsibility, weak leadership and

corporate self-regulation, businesses in Bangladesh fail to engage in adaptation to climate change

as desired. The government, of course, has significant lacking to allocate resources and provide

enabling policy. Though companies recognize some climate change related threats or

opportunities, they do not engage in adaptation with full potential due to many barriers that are

beyond their control. Engaging academia to do more research, communicating proper information

through media & academic curriculum, giving training to corporate managers, making access to

adaptation finance easy, enforcing proper laws and regulations, and providing incentives and

supporting infrastructures government can expedite the engagement of private sector in adaptation

to climate change in Bangladesh.

ACKNOWLEDGEMENT

The research was partially funded by Research Grant GL/F01/LARA-EC/2015(1) from Centre for

Innovation Management, Universiti Malaysia Sarawak.

REFERENCES

ADB (2011). Climate Change and Migration in Asia and the Pacific. Asian Development Bank.

Agrawala, S., Carraro, M., Kingsmill, N., Lanzi, E., Mullan, M., Prudent-Richard, G. (2011).

Private Sector Engagement in Adaptation to Climate Change: Approaches to Managing

Climate Risks, OECD Publication.

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Mehedi Islam and Rohaya Mohd-Nor 752

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